Match each type of insurance policy on the left with its correct description or coverage on the right.
- Fidelity Guarantee PolicyProtects an employer against financial losses resulting from dishonest acts or fraud by employees.
- Endowment PolicyCombines savings and protection by paying a specified sum at a target age or upon earlier death.
- Freight Insurance PolicyCovers the loss of transportation charges payable for carrying cargo if the voyage is disrupted.
- Consequential Loss PolicyCompensates a business for lost profits and ongoing fixed expenses following fire damage.
Answer
Fidelity Guarantee Policy matches protection against employee fraud; Endowment Policy matches combined savings and life protection; Freight Insurance Policy matches coverage for lost cargo transportation fees; Consequential Loss Policy matches compensation for lost business profits during fire recovery.
Each type of insurance policy targets a distinct commercial risk: Fidelity Guarantee addresses employee fraud; Endowment Policy provides life cover with savings; Freight Insurance protects shipping fee income; and Consequential Loss Insurance indemnifies lost operational profits after property fire damage.
Step-by-Step Solution
Key Concept
Classification and coverage of specific insurance policies under Life, Fire, Marine, and Accident insurance